How to Insure Your Car: A Step by Step Guide to Buying the Coverage You Need at Prices You Can Afford (How to Insure...Series)

363 Pages·1998·0.92 MB·English

by  The Silver Lake Editors

How to Insure Your Car : A Step By Step
title: Guide to Buying the Coverage You Need At
Prices You Can Afford
author:
publisher: Silver Lake Publishing
isbn10 | asin: 1563431173
print isbn13: 9781563431173
ebook isbn13: 9780585048376
language: English
Insurance, Automobile--United States,
subject Insurance, Automobile--Policies--United
States.
publication date: 1996
lcc: HG9970.3.H68 1996eb
ddc: 368.092
Insurance, Automobile--United States,
subject: Insurance, Automobile--Policies--United
States.
Page i
How to Insure Your Car
A Step by Step Guide to Buying the Coverage
You Need at Prices You Can Afford
The Merritt Editors
MERRITT PUBLISHING
A DIVISON OF THE MERRITT COMPANY
SANTA MONICA, CALIFORNIA
Page ii
How to Insure Your Car
First edition, 1996
Copyright © 1996 by Merritt Publishing
Merritt Publishing
1661 Ninth Street
Santa Monica, California 90406
For a list of other publications or for more information, please call
[phone]. Outside the United States and in Alaska and Hawaii,
please call [phone].
All rights reserved. No part of this book may be reproduced, stored in
a retrieval system or transcribed in form or by any means (electronic,
mechanical, photocopy, recording or otherwise) without the prior
written permission of Merritt Publishing.
Library of Congress Catalogue Number:
96-079504
The Merritt Editors
How to Insure Your Car
Includes index.
Pages: 265
ISBN: 1-56343-117-4
Printed in the United States of America.
Page iii
Acknowledgments
The Merritt Editors who contributed to this book include Debora
Chan, Cynthia Davidson, John Hartnett, Jan King and James Walsh.
Thanks to Mimi Tennant and Wendy Heichman for helping polish the
final product. Thanks also to: Kimberly Baer Design Associates,
Kathie Baumoel, Cynthia Chaillie, Ginger McKelvey and Megan
Thorpe.
Some forms that appear in this book are based on standard forms used
with the permission of the Insurance Services Office.
How to Insure Your Car is the first book in Merritt Publishing's How
to Insure... series. Upcoming titles will include How to Insure Your
Life and How to Insure Your Home. Because these books are designed
to make the concepts and theories of insurance understandable to
ordinary consumers, the Merritt Editors welcome any feedback.
Please fax at [phone] or call [phone] during ordinary
business hours, Pacific time. More information from Merritt
Publishing is available on the InsWeb Internet site at
http://www.insweb.com.
Page v
Table of Contents
Chapter 1 Why You Need Car Insurance 1
Chapter 2 How to Figure Out How Much Car Insurance
You Need 21
Chapter 3 How Car Insurance Works 47
Chapter 4 Important Definitions 69
Chapter 5 Why Liability Is an Important Issue 89
Chapter 6 Why Uninsured Motorists Coverage Is
Important 103
Chapter 7 How No-Fault Insurance Works 117
Page vi
Chapter 8 How Endorsements and Other Changes Work 131
Chapter 9 Tips for Shopping for Car Insurance 145
Chapter 10 How Insurance Companies Price Coverage 171
Chapter 11 How to Make an Insurance Claim 193
Chapter 12 Common ProblemsAnd How To Avoid 215
Them
Chapter 13 Fraud 239
Index 255
Page 1
Chapter 1
Why You Need Car Insurance
Dan Charron found an old-fashioned way to handle the high price of
car insurance. The Ontario, Canada, driverwho didn't have any
accidents on his driving recordwas so frustrated with the cost of auto
insurance that he got rid of his car and started riding a horse to work.
"It's more a protest to the insurance business," Charron told a local
newspaper in early 1995. "It is humorous, but I'm speaking for a lot of
people."
He figured he'd save about $17,000 over five years by not paying car
insurance premiums.
Riding a horse isn't an option for most people. In most states you have
to buy auto insurance if you drive a car.
Insurance is a necessity if you
drive a car or use a commercial
lender to finance your automobile
purchase. And annual premiums
can amount to a considerable
amount of money. So doing the
research is worthwhile.
Page 2
Necessary Coverages
Bodily injury liability. If you injure someone in a car accident, this
coverage pays their medical and rehabilitation expenses and any
damages for which they may sue you. In most states, you must buy
coverage of at least $15,000/$30,000 (the $15,000 pays for injuries to
one person; the $30,000 is the total available per accident).
Property damage liability. If you damage someone's property in an
accident for which you are at fault, this coverage pays to fix it. In
most states, you must buy $5,000 worth of coverage. Many standard
policies include a higher limitoften $25,000.
Medical benefits. This coverage pays medical bills for you and others
covered on your policy, no matter who was at fault for the accident. In
most states, you must buy at least $5,000 worth of coverage. The
typical driver buys $10,000 worth. This coverage usually does not
have a deductible.
Almost Necessary Coverages
Collision. This coverage pays to repair damage to your car in an
accident. Like medical benefits, it's no-fault coverage. If you're
financing a car purchase, most lenders require you to buy collision
coverage. Insurance companies will usually give you a $500
deductible unless you request another amount. The higher your
deductible, the lower your premium.
Comprehensive. This coverage pays for theft or damage to your car
from hazards including fire, flood, vandalism or striking an animal.
Again, most lenders